Edgar Filing: HARMONY GOLD MINING CO LTD

Page 1

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO

RULE 13a-16 OR 15d-16 UNDER THE SECURITIES

EXCHANGE ACT OF 1934

For 17 August 2016

Harmony Gold Mining Company

Limited

Randfontein Office Park

Corner Main Reef Road and Ward Avenue

Randfontein, 1759

South Africa

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-

F or Form 40-F.)

Form 20-F X

Form 40-F

(Indicate by check mark whether the registrant by

furnishing the information contained in this form

is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the

Securities Exchange Act of 1934.)

Yes

No X

Harmony Gold Mining Company Limited
(“Harmony” or “Company”)
Incorporated in the Republic of South Africa
Registration number 1950/038232/06
JSE share code: HAR
NYSE share code: HMY
ISIN: ZAE000015228

6 months

ended

6 months

ended

June

2016

(H2FY16)

December

2015

(H1FY16)

Variance

Year

ended

June 2016

Year

ended

June 2015

Variance

Gold produced

– kg

15 974

17 681

(10)

33 655

33 513

–

– oz

513 576

568 459

(10)

1 082 035

1 077 466

–

Cash operating costs

– R/kg

413 796

372 358

(11)

392 026

369 203

(6)

– US$/oz

836

851

841

1 003

Gold sold

– kg

15 900

17 742

(10)

33 642

34 332

(2)

– oz

511 198

570 417

(10)

1 081 615

1 103 793

(2)

Underground grade

– g/t

4.88

5.16

(5)

5.02

4.75

Total costs and capital

– R/kg

484 167

430 417

(12)

455 929

442 895

(3)

– US$/oz

978

983

978

1 203

All-in sustaining costs*

– R/kg

492 792

444 884

(11)

467 526

453 044

(3)

– US$/oz

996

1 016

1 003

1 231

Gold price received

– R/kg

605 476

490 773

544 984

449 570

– US$/oz

1 223

1 121

1 169

1 222

(4)

Production profit

– R million

3 092

1 992

5 084

2 802

– US$ million

201

146

350

245

Basic earnings/(loss) per share

– SAc/s

320

(102)

>100

218

(1 044)

>100

– USc/s

(7)

>100

(86)

>100

Headline earnings/(loss)

– Rm

1 412

(449)

>100

964

(821)

>100

– US$m

(33)

>100

(68)

>100

Headline earnings/(loss) per share

– SAc/s

324

(103)

>100

221

(189)

>100

– USc/s

(8)

>100

(16)

>100

Exchange rate

* Excludes share-based payment charge.

HARMONY'S ANNUAL REPORTS

Harmony's Integrated Annual Report, the Sustainable Development Information which serves as supplemental information to the Integrated Annual Report and
its annual report filed on a Form 20F with the United States' Securities and Exchange Commission for the financial year ended 30 June 2016 will be available on
our website (www.harmony.co.za/investors) on 26 October 2016. Mineral resource and reserve information as at 30 June 2016 is included in this report.

– R/US$

15.39

13.62

14.50

11.45

KEY FEATURES

Year on year

• 6% increase in underground recovered grade
• 54% reduction in net debt to R1.08 billion
(61% to US$74 million)

• Net profit of R949 million (US$64 million)
• Dividend of 50 SA cents (4 US cents)

• Headline earnings per share (HEPS)
of 221 SA cents (15 US cents)
• Enhancing our portfolio of copper-gold
assets

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

SHAREHOLDER INFORMATION

Issued ordinary share capital at 30 June 2016

437 299 479

Issued ordinary share capital at 31 December 2015

436 789 929

Issued ordinary share capital at 30 June 2015

436 187 133

MARKET CAPITALISATION

At 30 June 2016 (ZARm)

22 945

At 30 June 2016 (US$m)

1 567

At 31 December 2015 (ZARm)

6 813

At 31 December 2015 (US$m)

440

At 30 June 2015 (ZARm)

6 800

At 30 June 2015 (US$m)

560

HARMONY ORDINARY SHARES AND ADR PRICES

12-month high (1 July 2015– 30 June 2016) for ordinary shares

62.89

12-month low (1 July 2015– 30 June 2016) for ordinary shares

7.92

12-month high (1 July 2015– 30 June 2016) for ADRs

4.17

12-month low (1 July 2015 – 30 June 2016) for ADRs

0.53

FREE FLOAT

100%

ADR RATIO

1:1

JSE LIMITED

HAR

Range for six months (1 January – 30 June 2016 closing prices)

R15.60 – R62.89

Average daily volume for the six months (1 January – 30 June 2016)

2 934 226 shares

Range for previous six months (1 July – 31 December 2015
closing prices)

R7.92 – R19.89

Average daily volume for the previous six months
(1 July – 31 December 2015)

1 968 724 shares

Range for year (1 July 2015 – 30 June 2016 closing prices)

R7.92 – R62.89

Average daily volume for the year (1 July 2015 – 30 June 2016)

2 441 859 shares

Range for the previous year
(1 July 2014 – 30 June 2015 closing prices)

R15.32 – R38.50

Average daily volume for the previous year
(1 July 2014 – 30 June 2015)

1 700 854 shares

NEW YORK STOCK EXCHANGE

including other US trading platforms

HMY

Range for six months (1 January – 30 June 2016 closing prices)

US$1.06 – US$4.17

Average daily volume for the six months (1 January – 30 June 2016)

5 306 179

Range for previous six months
(1 July – 31 December 2015 closing prices)

US$0.53 – US$1.34

Average daily volume for the previous six months
(1 July – 31 December 2015)

2 778 343

Range for year (1 July 2015 – 30 June 2016 closing prices)

US$0.53 – US$4.17

Average daily volume for the year (1 July 2015 – 30 June 2016)

4 027 274

Range for the previous year (1 July 2014 – 30 June 2015 closing prices)

US$1.31 – US$3.29

Average daily volume for the previous year (1 July 2014 – 30 June 2015)

2 989 247

INVESTORS’ CALENDAR

Release of Harmony’s Integrated Annual Report of FY16

26 October 2016

Annual General Meeting

25 November 2016

CONTACT DETAILS

CORPORATE OFFICE

Randfontein Office Park
PO Box 2, Randfontein, 1760, South Africa
Corner Main Reef Road/Ward Avenue
Randfontein, 1759, South Africa
Tel: +27 11 411 2000
Website: www.harmony.co.za

DIRECTORS

P T Motsepe* Chairman

M Motloba*^

Deputy chairman

P W Steenkamp

Chief executive officer

F Abbott

Financial director

H E Mashego Executive director

F F T De Buck*^

Lead independent director

J A Chissano*1^, K V Dicks*^, Dr D S S Lushaba*^,
C Markus*^, M Msimang*^, K T Nondumo*^,
V P Pillay *^, J L Wetton*^, A J Wilkens*
* Non-executive
^ Independent
1 Mozambican

INVESTOR RELATIONS

Email: HarmonyIR@harmony.co.za

Marian van der Walt
Executive: Corporate and Investor Relations
Tel: +27 (0)11 411 2037
Mobile: +27 (0)82 888 1242
Email: marian@harmony.co.za

COMPANY SECRETARY

Riana Bisschoff
Tel: +27 (0)11 411 6020
Mobile: +27 (0)83 629 4706
Email: riana.bisschoff@harmony.co.za

SOUTH AFRICAN SHARE TRANSFER SECRETARIES

Link Market Services South Africa (Proprietary) Limited
(Registration number 2000/007239/07)
13th Floor, Rennie House
19 Ameshoff Street
Braamfontein, 2001
PO Box 4844, Johannesburg, 2000, South Africa
Tel: +27 86 154 6572
Fax: +27 86 674 2450
Email: meetfax@linkmarketservices.co.za

ADR

DEPOSITARY

Deutsche Bank Trust Company Americas
c/o American Stock Transfer and Trust Company
Peck Slip Station
PO Box 2050, New York, NY 10272-2050
Email queries: db@amstock.com
Toll Free: +1-800-937-5449
Intl: +1-718-921-8137
Fax: +1-718-921-8334

ADR: American Depository Receipts

SPONSOR

J.P. Morgan Equities South Africa (Pty) Ltd
1 Fricker Road, corner Hurlingham Road
Illovo
Johannesburg, 2196
Private Bag X9936, Sandton, 2146, South Africa
Tel: +27 11 507 0300
Fax: +27 11 507 0503

TRADING SYMBOLS

JSE Limited: HAR
New York Stock Exchange, Inc: HMY
Berlin Stock Exchange: HAM1

REGISTRATION NUMBER

1950/038232/06
Incorporated in the Republic of South Africa

ISIN

ZAE000015228

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the safe harbor provided
by Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the
Securities Act of 1933, as amended, with respect to our financial condition, results of operations,
business strategies, operating efficiencies, competitive positions, growth opportunities for existing
services, plans and objectives of management, markets for stock and other matters. These include
all statements other than statements of historical fact, including, without limitation, any statements
proceeded by, followed by, or that include the words “targets”, “believes”, “expects”, “aims”
“intends” “will”, “may”, “anticipates”, “would”, “should”, “could”, “estimates”, “forecast”,
“predict”, “continue” or similar expressions or the negative thereof.

These forward-looking statements, including, among others, those relating to our future business
prospects, revenues and income, wherever they may occur in this report and the exhibits to this
report, are essentially estimates reflecting the best judgment of our senior management and involve
a number of risks and uncertainties that could cause actual results to differ materially from those
suggested by the forward-looking statements. As a consequence, these forward-looking statements
should be considered in light of various important factors, including those set forth in this report.
Important factors that could cause actual results to differ materially from estimates or projections
contained in the forward-looking statements include, without limitation: overall economic and
business conditions in South Africa, Papua New Guinea, Australia and elsewhere, estimates of future
earnings, and the sensitivity of earnings to the gold and other metals prices, estimates of future gold
and other metals production and sales, estimates of future cash costs, estimates of future cash flows,
and the sensitivity of cash flows to the gold and other metals prices, statements regarding future
debt repayments, estimates of future capital expenditures, the success of our business strategy,
development activities and other initiatives, estimates of reserves statements regarding future
exploration results and the replacement of reserves, the ability to achieve anticipated efficiencies
and other cost savings in connection with past and future acquisitions, fluctuations in the market
price of gold, the occurrence of hazards associated with underground and surface gold mining,
the occurrence of labor disruptions, power cost increases as well as power stoppages, fluctuations
and usage constraints, supply chain shortages and increases in the prices of production imports,
availability, terms and deployment of capital, changes in government regulation, particularly mining
rights and environmental regulation, fluctuations in exchange rates, the adequacy of the Group’s
insurance coverage and socio-economic or political instability in South Africa and Papua New Guinea
and other countries in which we operate.

For a more detailed discussion of such risks and other factors (such as availability of credit or other
sources of financing), see the Company’s latest Integrated Annual Report on Form 20-F which is on
file with the Securities and Exchange Commission, as well as the Company’s other Securities and
Exchange Commission filings. The Company undertakes no obligation to update publicly or release
any revisions to these forward-looking statements to reflect events or circumstances after the date of
this annual report or to reflect the occurrence of unanticipated events, except as required by law.

COMPETENT PERSON’S DECLARATION

In South Africa, Harmony employs an ore reserve manager at
each of its operations who takes responsibility for the compilation
and reporting of mineral resources and mineral reserves at their
operations. In Papua New Guinea, competent persons are appointed
for the mineral resources and mineral reserves for specific projects
and operations.

The mineral resources and mineral reserves in this report are based
on information compiled by the following competent persons:

Resources and reserves of South Africa:

Jaco Boshoff, BSc (Hons), MSc, MBA, Pr. Sci. Nat, MSAIMM, MGSSA,
who has 21 years’ relevant experience and is registered with the
South African Council for Natural Scientific Professions (SACNASP)
and a member of the South African Institute of Mining and
Metallurgy (SAIMM).

Mr Boshoff is Harmony’s Lead Competent Person.

Jaco Boshoff

Physical address:

Postal address:

Randfontein Office park

P.O. Box 2
Randfontein

Corner of Main Reef Road and Ward Avenue
Randfontein

1760

South Africa

Resources and reserves of Papua New Guinea:

Gregory Job, BSc, MSc, who has 28 years’ relevant experience and
is a member of the Australian Institute of Mining and Metallurgy
(AusIMM).

Greg Job

Physical address:

Postal address:

Level 2

PO Box 1562

189 Coronation Drive

Milton, Queensland

Milton, Queensland 4064

4064

Australia

Both these competent persons, who are full-time employees of
Harmony Gold Mining Company Limited, consent to the inclusion in
the report of the matters based on the information in the form and
context in which it appears.

CONTENTS

PAGE

Shareholder information and contact details

Competent person’s declaration

Message from the chief executive officer

Summary update of Harmony’s mineral resources and mineral reserves

Notice of cash dividend

Operating results – six monthly comparisons (Rand/Metric) (US$/Imperial)

Operating results – year on year (Rand/Metric) (US$/Imperial)

Condensed consolidated income statements (Rand)

Condensed consolidated statements of comprehensive income (Rand)

Condensed consolidated statements of changes in equity (Rand)

Condensed consolidated balance sheets (Rand)

Condensed consolidated cash flow statements (Rand)

Notes to the condensed consolidated financial statements

Segment report (Rand/Metric)

Condensed consolidated income statements (US$)

Condensed consolidated statements of comprehensive income (US$)

Condensed consolidated statements of changes in equity (US$)

Condensed consolidated balance sheets (US$)

Condensed consolidated cash flow statements (US$)

Segment report (US$/Imperial)

Development results – Metric and Imperial

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER

Harmony is driven by excellence. We have a proactive approach
to safety and health, with excellent operational and management
teams, a world-class exploration team, we lead environmental
rehabilitation in South Africa and we continued to differentiate
ourselves through quality grade management, increasing
underground grade for the fourth consecutive year – this year by
6% to 5.02g/t.

Our revenue increased by 19% on the back of a 21% increase in the
R/kg gold price, combined with achieving our production guidance
of approximately 1.1 million ounces. Net debt was reduced by 54%
to R1.08 billion (61% to US$74 million). Having turned around the
previous year’s headline loss to headline earnings of 221 SA cents
(15 US$ cents), we felt it prudent to declare a dividend of 50 SA
cents (refer to dividend notice on page 8). Harmony remains well
positioned to benefit from a strong R/kg gold price.

We continue to have a positive view on the strength of the gold
price, with cash certainty being key in times of extreme market
volatility. The gold hedge was a necessary short-term step to secure
margins at some of our higher-cost operations and creates certainty
for a portion of our future cash flows. It enables us to further reduce
our debt and strengthen our balance sheet.

SAFETY

Sadly, in spite of recording an overall improvement in our safety
performance for the year, we had ten fatalities – nine in South Africa
(SA) and one in Papua New Guinea (PNG), compared with nine
fatalities in the previous year (eight in SA and one in PNG).

Year on year, our lost time and reportable injury frequency rates
improved and are in line with the industry’s milestone requirements.
During the year – to further assist management in ensuring that
safety standards are followed and regulations are adhered to, and
to increase awareness regarding safe behaviour – we established a
second-level safety assurance team, reporting to our central safety
structure. Training and safety awareness campaigns continue at all
of our operations.

YEAR-ON-YEAR OPERATIONAL RESULTS

Our total gold production for FY16 increased by 142kg (0.4%)
to 33 655kg, compared to 33 513kg in FY15. Gold production in
South Africa increased by 4% year on year, if the Target 3 operation
(placed on care and maintenance) in FY15 is excluded.

The following operations increased their gold production year on
year:

• Phakisa, by 870kg (28%), as a result of milling 75 000t (12%)
  more and increasing recovered grade by 14% to 5.81g/t
  (FY15: 5.10g/t);
• Tshepong, by 753kg (18%), as a result of a 10% (96 000t) rise
  in milled tonnes and a 7% improvement in recovered grade to
  4.62g/t (FY15: 4.31g/t);
• Bambanani, by 105kg (4%), as a result of a 2% increase in
  recovered grade to 12.99g/t (FY15: 12.70g/t);
• Doornkop, by 67kg (3%), due to a 4% (27 000t) increase in
  tonnes milled and in spite of a 2% decrease in recovered grade
  to 4.33g/t;
• Joel, by 20kg, through an increase in recovered grade of 2% to
  4.20g/t, while volume remained stable year on year;
• Unisel, by 9kg, a consequence of a 2% (7 000t) increase in tonnes
  milled, with volume and grade remaining stable;
• the dumps, by 203kg (24%), through improved tonnes milled
  (13%) and recovered grade (9%).

The following operations reported lower gold production for the
year:

• Hidden Valley was down 686kg (23%), due to a 19% decrease in
recovered grade to 1.31g/t (FY15: 1.61g/t) and a 5% decrease in
tonnes. Some 33 production days were lost during the September
2015 quarter when operations were suspended due to a fatality
in July 2015. The December 2015 quarter was affected by poor
grade and road closures, which restricted mining activity.

• Target 1 was 437kg (11%) lower due to a 10% decrease in recovered
grade to 4.58g/t (FY15: 5.11g/t). The operation was adversely
affected by safety stoppages during the March 2016 quarter.

• Kalgold was down 95kg (8%), a result of recovered grade
decreasing by 7% to 0.75g/t (FY15: 0.81g/t) and in spite of tonnes
milled increasing by 1% (7 000t).

• Kusasalethu, 90kg (2%) lower, was negatively affected by a
  planned stoppage to upgrade its infrastructure. A 26% (240 000t)
  decrease in tonnes milled however was partially offset by a 33%
  increase in the recovered grade to 5.78g/t (FY15: 4.35g/t).

• Phoenix was down 63kg (7%) due to a 14% decrease in recovered
grade to 0.12g/t (FY15: 0.14g/t), which was partially offset by a
4% (220 000t) increase in tonnes milled.

• Masimong was 31kg down due to having milled 20 000t (3%) less
than in FY15.

Target 3 was placed on care and maintenance during FY15 and
produced no gold in FY16.

YEAR-ON-YEAR FINANCIAL RESULTS

Higher gold production, together with a higher average Rand gold price
received, delivered a 19% increase in revenue of R18.3 billion (decrease
by 6% to US$1.27 billion). The average Rand gold price increased by
21% to R544 984/kg (R449 570/kg in FY15), due to a 27% weakening
of the Rand against the US dollar to US$/R14.50 (offsetting the 4%
decrease in the average gold price received to US1 169/oz).

Production profit increased to R5.084 billion, up 81% from
R2.802 billion in FY15 (increased by 43% to US$350 million), after
accounting for a 7% increase in cash operating costs (R821 million)
(decrease of US$171 million or 16%). Operating costs were higher
due to increases in labour costs, electricity and contractor costs at
our South African operations.

Overall, cost increases were lower than inflation, with all-in
sustaining cost (AISC) for all operations increasing by only 3% to
R467 526/kg, compared to R453 044/kg in FY15 (decreased by 19%
to US$1 003/oz compared to US$1 231/oz in FY15).

Annual adjustments recorded include the net reversal of an
impairment of R43 million (US$3 million) (which consists of a reversal
of impairment of R738 million (US$50 million) on Doornkop, offset
by an impairment of R466 million (US$32 million) on Hidden Valley
and R229 million (US$16 million) on Masimong) and a rehabilitation
provision change in estimate credit of R110 million (US$7 million).

In FY16 a net profit of R949 million (US$64 million) was recorded
compared to a net loss of R4.5 billion (US$374 million) in FY15 and
consequently, headline earnings amounted to 221 SA cents per
share (15 US cents per share) compared to a headline loss of 189
SA cents per share (16 US cents per share) for FY15.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

HEDGING ACTIVITY

Currency hedging

Since February 2016, Harmony initiated and maintained a foreign exchange hedging programme. Hedging is in the form of zero cost collars,
which establish a minimum (floor) and maximum (cap) Rand/US dollar exchange rate at which to convert US dollars to Rands. The nominal
value of the hedging contracts as at 30 June 2016 was US$500 million. The hedging contracts are spread over a 12 month period, and are
summarised as follows:

H1 FY17

H2 FY17

Sold call options
Nominal

US$250 million

Average strike price

R18.57

R17.97

Lowest strike price

R17.93

R16.92

Highest strike price

R19.08

Purchased put option
Nominal

US$250 million

Average strike price

R15.56

R15.53

Lowest strike price

R15.40

R15.10

Highest strike price

R15.80

R16.10

Gold hedging

To create cash certainty, we entered into short-term gold forward sale contracts during July 2016 for 432 000oz over a period of 24 months,
representing approximately 20% of our total production. The sharp increase in the R/kg gold price provided us with an opportunity to lock in
20% of our gold sales at a very attractive average rate of approximately R682 000/kg. The breakdown of gold forward sale contracts entered
into post year end are as follows:

FY17

Kgs

3 049

3 360

Average R/kg

R645 121

R666 888

FY18

Kgs

3 360

Average R/kg

R692 836

R720 374

FY19

Kgs

311

Average R/kg

R725 499

The limited size and duration of the hedge means shareholders retain full upside exposure on 80% of Harmony’s gold production for the next
two years, after which they will have 100% exposure to the gold price.

MINERAL RESOURCES AND RESERVES

Harmony owns significant gold ore deposits. Attributable gold
equivalent mineral resources as declared at 30 June 2016, were
105.2Moz, a 4.6% decrease year on year. The total gold contained
in the mineral resources at the South African operations represents
55.2% of the company’s total, with the Papua New Guinea (PNG)
operations representing 44.8% of Harmony’s total gold and gold
equivalent mineral resources.

Our attributable gold and gold equivalent mineral reserves
amounted to 36.9Moz of gold, a 13.3% decrease year on year.
The gold reserve ounces in South Africa represent 45.4% while the
PNG gold and gold equivalent ounces represent 54.6% of our total
mineral reserves. See pages 6 to 8 for our resources and reserves
statement.

GOLPU

The joint venture is pursuing a conventional process of applying for
a special mining lease under the PNG Mining Act, targeted to be
lodged in the first quarter of FY17.

EXPLORATION

Kili Teke

Worldwide, new greenfield copper-gold discoveries are scarce. Our
exploration strategy in PNG remains to create long term value for
shareholders by enhancing and developing our world-class portfolio
of copper-gold assets, at industry leading discovery costs – less than
$US10 per equivalent gold ounce.

Kili Teke is a prolific complex with multiple mineralised intrusive
events. The revised mineral resource estimate for Kili Teke comprises
222Mt at 0.35% copper, 0.25 g/t gold and 170 ppm molybdenum
containing 782 000t copper, 1.75Moz of gold and 38 000t
molybdenum. The updated resource has grown 50% to 6Moz on
a gold equivalent basis¹ compared to the November 2015 model.

Refer to the website (www.harmony.co.za) for a detailed annexure
related to the Kili Teke resource update.

1 Gold equivalent based on US$1 150 per ounce gold, and US$3 per pound

of copper and assumes 100% recovery of all metals.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

MESSAGE FROM THE CHIEF EXECUTIVE OFFICER (CONTINUED)

South Africa

Exploration drilling is planned at Tshepong, Phakisa, Doornkop,
Target 1 and Kalgold.

NEW DRAFT MINING CHARTER

A new draft of the broad-based socio-economic empowerment charter
for the South African mining industry (Mining Charter) was published
by the Minister of Mineral Resources on 15 April 2016. We are actively
participating in the discussions on the provisions of the new charter to
ensure that the interests of all our stakeholders are protected.

STAKEHOLDER RELATIONS

Stronger margins helped us to continue to meet our social and
environmental commitments, substantiating our holistic approach to
mining in the interests of all of our stakeholders and our status as a
responsible miner. Harmony has – and continues to – make a difference:

• to shareholders – creating value by operating profitably and
growing our margins

• to our employees – ensuring that they are safe and healthy

• to communities – participating in local economic development,
limiting and mitigating our impact on the environment

• to government – contributing to the national fiscus

By conducting our business efficiently, profitably and sustainably,
Harmony creates shared value for all stakeholders, enabling it to
contribute to improved education, build infrastructure, provide
healthcare, stimulate local economies and rehabilitate the
environment.

OBJECTIVE FOR THE NEXT THREE YEARS

Maintaining and growing our margins efficiently are essential to
sustaining our business and meeting our strategic objectives.

Harmony has shown that it can successfully operate as a gold
miner and explorer in both South Africa and PNG. The board has
supported a three-year strategy in which we plan to grow Harmony’s
production to approximately 1.5Moz, producing gold at an all-in
sustaining cost of $950/oz, through:

• growing, nurturing and developing our core assets

• harvesting operations that are high cost and have a short life

• developing Golpu Stage 1

• expanding in South Africa, into Africa and PNG

• assessing organic growth opportunities

In the next year, we plan to produce approximately 1 050 000
ounces at about $1 100/oz (~R495 000/kg at an exchange rate of
R14.00). Through operational excellence, adhering to our company
values, applying mining discipline, further increasing our productivity,
creating an enabling environment and grade cut-off, we believe that
the guidance is realistic and achievable. We will not mine areas that
are unsafe or at grades lower than planned.

Our management teams are geared to deliver. On executive level,
I am well supported by an experienced, competent team and on
operational level, my two chief operating officers will ensure safe,
profitable production. I have no doubt that Harmony’s current
momentum will be upheld.

Harmony has a strong investment case, being one of the few gold
mining companies increasing its underground grade, with one of the
lowest debt:EBITDA ratios in the gold mining industry making a real
and lasting difference in the communities adjacent to our mines and
growing our gold-copper ounces at industry leading discovery costs.

Peter Steenkamp

Chief Executive Officer

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES

AND MINERAL RESERVES AS AT 30 JUNE 2016

Harmony’s statement of mineral resources and mineral reserves as
at 30 June 2016 is produced in accordance with the South African
Code for the Reporting of Mineral Resources and Mineral Reserves
(SAMREC) and the Australasian Code for Reporting of Exploration
Results, Mineral Resources and Ore Reserves (JORC). It should
be noted that the mineral resources are reported inclusive of the
mineral reserves.

This report provides a summary of the update, while the detailed
statement of the mineral resources and mineral reserves will be
published in the Integrated Report on 26 October 2016, which will
be available at www.harmony.co.za/investors. Refer to the website
(www.harmony.co.za) for the updated reserves and resources tables
as at 30 June 2016.

Harmony uses certain terms in the summary such as ‘measured’,
‘indicated’ and ‘inferred’ resources, which the United States’
Securities and Exchange Commission guidelines strictly prohibit
companies registered in the United States from including in their
filings with the commissio n. United States investors are urged
to consider the disclosure in this regard in our Form 20-F which
will be available on our website at www.harmony.co.za/investors/
reporting/20f on 26 October 2016.

INTRODUCTION

Gold mining and gold production are central to Harmony’s existence.
Maintaining and growing our margins efficiently are essential to
sustaining our business and meeting our strategic objectives. This
includes delivering safely on our operational plans, reducing costs,
improving productivity and maximising revenue.

We are devoted to improving the company’s operational
performance. Our values are entrenched in everything we do –
safety, accountability, achievement, being connected and honest –
and they inform our decisions and our actions. Realistic planning
supports our strategy to optimise assets – our ore bodies, our
infrastructure and our people. This will ensure safer, more profitable
production. Our life of mine plans for financial year 2017 were done
in line with this approach.

Harmony – Total

The company’s attributable gold and gold equivalent mineral
resources are declared as 105.2Moz as at 30 June 2016, a 4.6%
decrease year on year from the 110.3Moz declared as at 30 June
2015. The total gold contained in the mineral resources at the South
African operations represents 55.2% of the company total, with
the Papua New Guinea (PNG) operations representing 44.8% of
Harmony’s total gold and gold equivalent mineral resources as at 30
June 2016.

Harmony’s attributable gold and gold equivalent mineral reserves
amounts to 36.9Moz, a 13.3% decrease from the 42.6Moz declared
at 30 June 2015. The gold reserve ounces in South Africa represent
45.4% while the PNG gold and gold equivalent ounces represent
54.6% of Harmony’s total mineral reserves as at 30 June 2016.

SOUTH AFRICA

South African underground operations

The company’s mineral resources at the South African underground
operations as at 30 June 2016 are 48.6Moz (162.1Mt at 9.32g/t), a
decrease of 19.9% year on year from the 60.6Moz (217.2Mt at 8.68g/t)
declared as at 30 June 2015. This decrease is mainly due to depletion
and reduced resources at Unisel and Masimong. There was also a

reduction at Doornkop due to the low grade South Reef to the east of
the mine that has been removed from the declaration.

The company’s mineral reserves at the South African underground
operations as at 30 June 2016 are 9.7Moz (54.1Mt at 5.55g/t),
a decrease of 35.7% year on year from the 15.0Moz (80.3Mt at
5.82g/t) declared as at 30 June 2015. The decrease is due to normal
depletion and the revised Kusasalethu life of mine plan. The shorter
life of mine plan at Kusasalethu optimises the mine’s cash flow at a
higher grade and creates a much stronger margin, providing us with
the option to consider the feasibility to access the high grade VCR
payshoot below infrastructure in the future.

South African surface operations, including Kalgold

The company’s mineral resources at the South African surface
operations as at 30 June 2016 are 9.5Moz (1 085.2Mt at 0.27g/t) which
is materially the same as at the 30 June 2015 (1 082.3Mt at 0.27g/t).
The company’s mineral reserves at the South African surface operations
as at 30 June 2016 are 7.1Moz (840.3Mt at 0.26g/t), in line with the
7.1Moz (835.9Mt at 0.26g/t) declared at 30 June 2015.

PAPUA NEW GUINEA (PNG)

Papua New Guinea operations

The company’s attributable gold and gold equivalent mineral
resources at the PNG operations as at 30 June 2016 are 47.1Moz,
an increase of 17.1% year on year from the 40.2Moz declared as at
30 June 2015. This increase is due to resources declared at Kili Teke
and increases due to gold equivalent ratios that changed due to new
long term commodity prices used.

The company’s gold and gold equivalent mineral reserves at the PNG
operations as at 30 June 2016 are 20.2Moz, a decrease of 1.8%
year on year from the 20.5Moz declared as at 30 June 2015.

ASSUMPTIONS

In converting the mineral resources to mineral reserves, the following
commodity prices and exchange rates were applied:

• A gold price of US$1 150/oz
• An exchange rate of R/US$12.85
• The above parameters resulted in a rand gold price of R475 000/kg
  for the South African assets.
• The Hidden Valley mine and Golpu project in the Morobe Mining
  Joint Venture used commodity prices of US$ 1 150/oz Au,
  US$15.00/oz Ag, US$5.00/lb Mo and US$3.00/lb Cu at an
  exchange rate of US$0.80 per A$.
• Gold equivalent ounces are calculated assuming US$1 150/oz
  Au, US$3.00/lb Cu and US$15.00/oz Ag, and assuming a 100%
  recovery for all metals.

Harmony’s South African mineral resources and reserves at
Tshepong, Phakisa, Kalgold and the group statement were
independently reviewed by The Mineral Corporation for compliance
to SAMREC. The mineral resources of the Hidden Valley operation
were independently reviewed by SRK Consulting Engineers
and Scientists and Golpu was independently reviewed by AMC
Consultants Pty Ltd for compliance with the standards set out
in JORC.

Note: Au= gold; Cu = copper; Ag = Silver, Mo = Molybdenum,

Moz= million ounces

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

SUMMARY UPDATE OF HARMONY’S MINERAL RESOURCES AND MINERAL RESERVES

(CONTINUED) AS AT 30 JUNE 2016

Mineral Resources:
gold and gold equivalents

Measured

Indicated

Inferred

Total

Tonnes

Gold

Tonnes

Gold

Tonnes

Gold

Tonnes

Gold

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

SA underground

55.3

9.83

17 475

61.1

9.08

17 846

45.7

9.03

13 248

162.1

9.32

48 569

SA surface incl Kalgold

346.2

0.28

3 146

664.0

0.25

5 266

75.0

0.44

1 051

1 085.2

0.27

9 463

Total South Africa

401.5

20 621

725.2

23 111

120.6

14 299

1 247.3

58 031

Hidden Valley*

1.3

1.09

36.4

1.62

1 898

1.1

1.28

38.9

1.59

1 991

Wafi-Golpu system*

–

400.7

0.86

11 051

99.1

0.74

2 358

499.9

0.83

13 409

Kili Teke

–

221.5

0.25

1 751

221.5

0.25

1 751

Total Papua New Guinea

1.3

437.2

12 949

321.8

4 155

760.3

17 151

Total gold Resources

402.8

20 668

1 162.4

36 060

442.4

18 454

2 007.6

75 182

Hidden Valley – gold equivalent ounces*

1.3

35.0

450

1.0

37.3

475

Wafi-Golpu – gold equivalent ounces*

–

344.0

21 469

87.8

3 559

431.8

25 028

Kili Teke

–

221.5

4 494

221.5

4 494

Total gold equivalent Resources*

1.3

379.0

21 919

310.3

8 067

690.6

29 997

Total Harmony gold and gold
equivalent Resource**

402.8

20 679

1162.4

57 979

442.4

26 521

2 007.6

105 179

Mineral Resources:
silver and copper
(used in equivalent calculations)

Measured

Indicated

Inferred

Total

Tonnes

Silver

Tonnes

Silver

Tonnes

Silver

Tonnes

Silver

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

Hidden Valley

1.3

21.52

882

35.0

30.72

34 526

1.0

31.69

1 057

37.3

30.43

36 466

Measured

Indicated

Inferred

Total

Tonnes

Copper

Tonnes

Copper

Tonnes

Copper

Tonnes

Copper

(Mt)

‘Mlb

(Mt)

‘Mlb

(Mt)

‘Mlb

(Mt)

‘Mlb

Golpu

–

344.0

1.09

8 232

67.9

0.85

1 273

411.9

1.05

9 505

Nambonga

–

19.9

0.21

19.9

0.21

Kili Teke

–

221.5

0.35

1 723

221.5

0.35

1 723

Total

–

344.0

1.09

8 232

309.3

0.45

3 088

653.3

0.79

11 320

Mineral Reserves: gold and gold equivalents

Proved

Probable

Total

Tonnes

Gold

Tonnes

Gold

Tonnes

Gold

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

SA Underground

37.6

5.81

7 008

16.6

4.96

2 645

54.1

5.55

9 654

SA Surface including Kalgold

261.0

0.28

2 384

579.4

0.25

4 720

840.4

0.26

7 104

Total South Africa

298.5

9 393

596.0

7 365

894.5

16 758

Hidden Valley*

1.3

1.09

12.5

1.67

671

13.8

1.62

718

Golpu system*

–

189.6

0.91

5 522

189.6

0.91

5 522

Total Papua New Guinea

1.3

202.0

6 193

203.4

6 239

Total gold Reserves

299.9

9 440

798.0

13 558

1 097.9

22 997

Hidden Valley – gold equivalent ounces*

1.3

11.5

167

12.7

178

Golpu – gold equivalent ounces*

–

189.6

13 741

189.6

13 741

Total gold equivalent Reserves*

1.3

201.0

13 908

202.3

13 919

Total Harmony gold and gold equivalent Reserves**

299.9

9 451

798.0

27 465

1 097.9

36 916

Mineral Reserves: silver and copper
(used in equivalent calculations)

Proved

Probable

Total

Tonnes

Silver

Tonnes

Silver

Tonnes

Silver

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

(Mt)

g/t

‘000oz

Hidden Valley

1.3

21.52

882

11.5

34.69

12 789

12.7

33.37

13 671

Proved

Probable

Total

Tonnes

Copper

Tonnes

Copper

Tonnes

Copper

(Mt)

‘Mlb

(Mt)

‘Mlb

(Mt)

‘Mlb

Golpu

–

189.6

1.26

5 269

189.6

1.26

5 269

* Represents Harmony’s equity portion of 50%.
** In instances where individual deposits may contain multiple valuable commodities with a reasonable expectation of being recovered (for example gold and

copper in a single deposit) Harmony computes a gold equivalent to more easily assess the value of the deposit against gold-only mines. Harmony does this
by calculating the value of each of the deposits commodities, then dividing the product by the price of gold. For example, the gold equivalent ounces for the
copper portion of a deposit would be calculated as follows: (copper pounds x copper price per pound)/gold price per ounce. All gold equivalent calculations
are done using metal prices and parameters as stipulated above.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

ADMINISTRATIVE INFORMATION FOR PROFESSIONAL

ORGANISATIONS

SACNASP – THE LEGISLATED REGULATORY BODY FOR
NATURAL SCIENCE PRACTITIONERS IN SOUTH AFRICA

Private Bag X540, Silverton, 0127, Gauteng Province, South Africa
Telephone: +27 (12) 841-1075; Facsimile: +27 (86) 206 0427
http://www.sacnasp.org.za/

SAIMM – THE SOUTHERN AFRICAN INSTITUTE OF MINING
AND METALLURGY

P.O. Box 61127, Marshalltown, 2107
Gauteng Province, South Africa
Telephone: +27 (011) 834-1273/7;
Facsimile: +27 (011) 838-5923/8156
http://www.saimm.co.za/

AUSIMM – THE AUSTRALASIAN INSTITUTE OF MINING
AND METALLURGY

PO Box 660, Carlton South, Vic 3053, Australia
Telephone: +61 3 9658 6100; Facsimile: +61 3 9662 3662
http://www.ausimm.com.au/

LEGAL ENTITLEMENT TO THE MINERALS BEING REPORTED
UPON

Harmony’s South African operations operate under new order
mining rights in terms of the Minerals and Petroleum Resources
Development of Act of 2002 (Act No. 28, of 2002) (MPRDA). In
PNG Harmony operates under the Independent State of Papua
New Guinea Mining Act 1992. All required operating permits have
been obtained, and are in good standing. The legal tenure of each
operation and project has been verified to the satisfaction of the
accountable Competent Person.

DECLARATION OF ORDINARY DIVIDEND NO. 86

The board has approved and declared a final dividend of 50 SA
cents per ordinary share in respect of the year ended
30 June 2016.

In accordance with paragraphs 11.17(a)(i) to (x) and 11.17(c)
of the JSE Listings Requirements the following additional
information is disclosed:

• The dividend has been declared out of income reserves;
• The local Dividends Tax rate is 15% (fifteen per centum);
• The gross local dividend amount is 50 SA cents per ordinary
  share for shareholders exempt from the Dividends Tax;
• The net local dividend amount is 42.5 SA cents per ordinary
  share for shareholders liable to pay the Dividends Tax;
• Harmony currently has 437 299 479 ordinary shares in issue
  (which includes 572 296 treasury shares); and
• Harmony Gold Mining Company Limited’s income tax
  reference number is 9240/012/60/0.

A dividend No. 86 of 50 SA cents per ordinary share, being the
dividend for the year ended 30 June 2016, has been declared

payable on Monday, 19 September 2016 to those shareholders
recorded in the books of the company at the close of business
on Friday, 16 September 2016. The dividend is declared in the
currency of the Republic of South Africa. Any change in address or
dividend instruction to apply to this dividend must be received by
the company’s transfer secretaries or registrar not later than Friday,
16 September 2016.

Last date to trade ordinary shares cum dividend is Tuesday,
13 September 2016

Ordinary shares trade ex-dividend Wednesday, 14 September 2016

Record date Friday, 16 September 2016

Payment date Monday, 19 September 2016

No dematerialisation or rematerialisation of share certificates
may occur between Wednesday, 14 September 2016 and Friday,
16 September 2016, both dates inclusive, nor may any transfers
between registers take place during this period.

NOTICE OF CASH DIVIDEND

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

OPERATING RESULTS – SIX MONTHLY (RAND/METRIC) (US$/IMPERIAL)

Underground production

Six
months
ending

Kusasalethu

Doornkop

Phakisa

Tshepong

Masimong

Target 1

Bambanani

Ore
milled

– t’000

Jun-16

286

316

330

535

301

359

106

Dec-15

382

314

356

553

349

380

126

Gold produced

– kg

Jun-16

1 874

1 356

1 962

2 506

1 098

1 299

1 217

Dec-15

1 989

1 374

2 026

2 525

1 334

2 088

1 796

– oz

Jun-16

60 250

43 597

63 080

80 570

35 301

41 764

39 127

Dec-15

63 948

44 175

65 137

81 181

42 889

67 131

57 743

Yield

– g/tonne

Jun-16

6.55

4.29

5.95

4.68

3.65

3.62

11.48

Dec-15

5.21

4.38

5.69

4.57

3.82

5.49

14.25

Cash
operating
costs

– R/kg

Jun-16

493 474

393 324

359 707

378 718

472 507

474 139

330 966

Dec-15

463 958

381 921

331 657

354 907

389 369

300 044

225 845

– $/oz

Jun-16

997

795

727

765

955

958

669

Dec-15

1 060

872

758

811

889

685

516

Cash operating
costs

– R/tonne

Jun-16

3 233

1 688

2 139

1 774

1 724

1 716

3 800

Dec-15

2 416

1 671

1 887

1 621

1 488

1 649

3 219

Gold sold

– Kg

Jun-16

1 806

1 314

1 955

2 496

1 095

1 323

1 212

Dec-15

2 016

1 398

2 036

2 533

1 337

2 096

1 803

– oz

Jun-16

58 064

42 247

62 855

80 248

35 205

42 535

38 967

Dec-15

64 816

44 946

65 459

81 437

42 986

67 388

57 967

Revenue

(R’000)

Jun-16

1 094 106

793 872

1 184 626

1 513 124

662 784

800 723

733 943

Dec-15

983 659

686 256

1 001 761

1 242 604

654 888

1 032 532

883 332

Cash operating costs

(R’000)

Jun-16

924 771

533 348

705 746

949 067

518 813

615 907

402 786

Dec-15

922 812

524 760

671 938

896 140

519 418

626 491

405 617

Inventory
movement

(R’000)

Jun-16

(43 481)

(25 720)

(4 988)

(7 011)

(2 906)

632

(977)

Dec-15

12 174

14 318

2 469

5 886

2 614

6 938

3 877

Operating
costs

(R’000)

Jun-16

881 290

507 628

700 758

942 056

515 907

616 539

401 809

Dec-15

934 986

539 078

674 407

902 026

522 032

633 429

409 494

Production
profit

(R’000)

Jun-16

212 816

286 244

483 868

571 068

146 877

184 184

332 134

Dec-15

48 673

147 178

327 354

340 578

132 856

399 103

473 838

Production
profit

($’000)

Jun-16

13 824

18 594

31 432

37 095

9 541

11 964

21 574

Dec-15

3 575

10 808

24 040

25 011

9 756

29 309

34 796

Capital
expenditure

(R’000)

Jun-16

196 209

115 874

162 445

167 480

57 328

160 994

52 850

Dec-15

163 303

91 753

160 618

139 378

52 961

161 344

53 306

($’000)

Jun-16

12 745

7 527

10 552

10 879

3 724

10 458

3 433

Dec-15

11 992

6 738

11 795

10 235

3 889

11 848

3 915

Cash Operating
Cost and Capital

– R/kg

Jun-16

598 175

478 777

442 503

445 549

524 719

598 076

374 393

Dec-15

546 061

448 699

410 936

410 106

429 070

377 316

255 525

– $/oz

Jun-16

1 209

967

894

900

1 060

1 208

756

Dec-15

1 247

1 025

939

937

980

862

584

All-in sustaining*
costs

– R/kg*

Jun-16

614 069

486 741

453 534

456 159

546 615

604 176

375 987

Dec-15

558 006

461 175

420 099

420 902

450 047

388 367

256 670

– $/oz*

Jun-16

1 241

983

916

922

1 104

1 221

760

Dec-15

1 275

1 053

960

961

1 028

887

586

* Excludes share-based payment charge.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

South Africa

Surface production

Joel

Unisel

Total

Underground

Phoenix

Dumps

Kalgold

Total

Surface

Total

South
Africa

Hidden

Valley

Total

Harmony

264

202

2 699

3 161

1 612

745

5 518

8 217

994

9 211

278

222

2 960

3 304

1 429

734

5 467

8 427

735

9 162

1 086

765

13 163

385

518

532

1 435

14 598

1 376

15 974

1 192

939

15 263

419

547

571

1 537

16 800

881

17 681

34 916

24 595

423 200

12 378

16 654

17 104

46 136

469 336

44 240

513 576

38 323

30 190

490 717

13 471

17 587

18 359

49 417

540 134

28 325

568 459

4.11

3.79

4.88

0.12

0.32

0.71

0.26

1.78

1.38

1.73

4.29

4.23

5.16

0.13

0.38

0.78

0.28

1.99

1.20

1.93

391 795

499 125

414 629

414 577

434 317

518 949

460 397

419 128

357 227

413 796

352 208

396 112

351 108

383 002

369 514

476 532

412 949

356 765

669 695

372 358

792

1 008

838

878

1 048

930

847

722

836

804

905

802

875

844

1 088

943

815

1 530

851

1 612

1 890

2 022

140

371

120

745

495

718

1 510

1 675

1 810

141

371

116

711

803

719

1 008

761

12 970

379

507

550

1 436

14 406

1 494

15 900

1 237

944

15 400

409

551

536

1 496

16 896

846

17 742

32 408

24 467

416 996

12 185

16 300

17 683

46 168

463 164

48 034

511 198

39 771

30 350

495 120

13 150

17 715

17 233

48 098

543 218

27 199

570 417

610 307

461 552

7 855 037

228 671

305 487

331 996

866 154

8 721 191

905 875

9 627 066

609 720

463 388

7 558 140

200 308

271 119

263 210

734 637

8 292 777

414 521

8 707 298

425 489

381 831

5 457 758

159 612

224 976

276 081

660 669

6 118 427

491 544

6 609 971

419 832

371 949

5 358 957

160 478

202 124

272 100

634 702

5 993 659

590 001

6 583 660

(33 734)

(1 383)

(119 568)

(4 371)

(10 171)

7 888

(6 654)

(126 222)

51 051

(75 171)

19 605

1 493

69 374

(3 466)

1 575

(16 025)

(17 916)

51 458

79 522

130 980

391 755

380 448

5 338 190

155 241

214 805

283 969

654 015

5 992 205

542 595

6 534 800

439 437

373 442

5 428 331

157 012

203 699

256 075

616 786

6 045 117

669 523

6 714 640

218 552

81 104

2 516 847

73 430

90 682

48 027

212 139

2 728 986

363 280

3 092 266

170 283

89 946

2 129 809

43 296

67 420

7 135

117 851

2 247 660

(255 002)

1 992 658

14 197

5 268

163 489

4 770

5 891

3 121

13 782

177 271

23 598

200 869

12 505

6 604

156 404

3 180

4 951

524

8 655

165 059

(18 726)

146 333

103 098

32 263

1 048 541

4 736

14 402

17 966

37 104

1 085 645

38 465

1 124 110

111 909

29 802

964 374

576

3 197

18 028

21 801

986 175

40 369

1 026 544

6 697

2 096

68 111

308

936

1 167

2 411

70 522

2 499

73 021

8 218

2 189

70 819

235

1 324

1 601

72 420

2 965

75 385

486 728

541 299

494 287

426 878

462 120

552 720

486 253

493 497

385 181

484 167

446 091

427 850

414 291

384 377

375 358

508 105

427 133

415 466

715 516

430 417

983

1 094

999

862

934

1 117

982

997

778

978

1 019

977

946

878

857

1 161

976

949

1 634

983

445 332

561 454

501 430

422 997

461 111

565 351

490 977

499 393

429 121

492 792

407 736

443 413

421 597

386 218

386 406

528 067

437 110

422 371

894 524

444 884

900

1 134

1 013

855

932

1 142

992

1 009

867

996

931

1 013

963

882

883

1 206

998

965

2 043

1 016

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

OPERATING RESULTS – YEAR ON YEAR (RAND/METRIC) (US$/IMPERIAL)

Year
ended

Underground production

Kusasalethu

Doornkop

Phakisa

Tshepong

Masimong

Target 1

Bambanani

Ore milled

– t’000

Jun-16

668

630

686

1 088

650

739

232

Jun-15

908

603

611

992

670

749

229

Gold
produced

– kg

Jun-16

3 863

2 730

3 988

5 031

2 432

3 387

3 013

Jun-15

3 953

2 663

3 118

4 278

2 463

3 824

2 908

– oz

Jun-16

124 198

87 772

128 217

161 751

78 190

108 895

96 870

Jun-15

127 092

85 618

100 246

137 540

79 187

122 944

93 495

Yield

– g/tonne

Jun-16

5.78

4.33

5.81

4.62

3.74

4.58

12.99

Jun-15

4.35

4.42

5.10

4.31

3.68

5.11

12.70

Cash
operating
costs

– R/kg

Jun-16

478 277

387 585

345 457

366 767

426 904

366 814

268 305

Jun-15

472 112

402 065

373 876

371 149

397 380

308 156

239 552

– $/oz

Jun-16

1 026

831

741

787

916

787

576

Jun-15

1 283

1 092

1 016

1 008

1 080

837

651

Cash operating costs – R/tonne

Jun-16

2 766

1 680

2 008

1 696

1 597

1 681

3 484

Jun-15

2 055

1 776

1 908

1 601

1 461

1 573

3 042

Gold sold

– Kg

Jun-16

3 822

2 712

3 991

5 029

2 432

3 419

3 015

Jun-15

4 297

2 711

3 156

4 337

2 491

3 868

2 947

– oz

Jun-16

122 880

87 193

128 314

161 685

78 191

109 923

96 934

Jun-15

138 151

87 160

101 468

139 437

80 087

124 358

94 748

Revenue

(R’000)

Jun-16

2 077 765

1 480 128

2 186 387

2 755 728

1 317 672

1 833 255

1 617 275

Jun-15

1 938 854

1 219 563

1 420 103

1 948 230

1 118 128

1 737 965

1 329 685

Cash operating costs

(R’000)

Jun-16

1 847 583

1 058 108

1 377 684

1 845 207

1 038 231

1 242 398

808 403

Jun-15

1 866 258

1 070 700

1 165 744

1 587 777

978 747

1 178 389

696 616

Inventory
movement

(R’000)

Jun-16

(31 307)

(11 402)

(2 519)

(1 125)

(292)

7 570

2 900

Jun-15

129 449

21 487

15 055

23 589

12 776

12 463

8 156

Operating costs

(R’000)

Jun-16

1 816 276

1 046 706

1 375 165

1 844 082

1 037 939

1 249 968

811 303

Jun-15

1 995 707

1 092 187

1 180 799

1 611 366

991 523

1 190 852

704 772

Production
profit

(R’000)

Jun-16

261 489

433 422

811 222

911 646

279 733

583 287

805 972

Jun-15

(56 853)

127 376

239 304

336 864

126 605

547 113

624 913

($’000)

Jun-16

18 035

29 893

55 950

62 876

19 293

40 229

55 588

Jun-15

(4 966)

11 127

20 905

29 427

11 060

47 794

54 591

Capital
expenditure

(R’000)

Jun-16

359 512

207 627

323 063

306 858

110 289

322 338

106 156

Jun-15

462 863

245 144

403 495

313 317

165 670

295 504

109 910

($’000)

Jun-16

24 795

14 320

22 282

21 164

7 607

22 232

7 322

Jun-15

40 434

21 415

35 248

27 370

14 472

25 814

9 601

Cash Operating
Cost and Capital

– R/kg

Jun-16

571 342

463 639

426 466

427 761

472 253

461 983

303 538

Jun-15

589 203

494 121

503 284

444 388

464 644

385 432

277 347

– $/oz

Jun-16

1 226

995

915

918

1 013

991

651

Jun-15

1 601

1 343

1 367

1 207

1 262

1 047

754

All-in sustaining*
costs

– R/kg

Jun-16

584 498

473 562

436 477

438 401

493 527

471 876

304 634

Jun-15

587 406

501 151

495 644

454 512

479 096

395 669

270 623

– $/oz

Jun-16

1 254

1 016

936

940

1 059

1 012

654

Jun-15

1 596

1 362

1 347

1 235

1 302

1 075

735

* Excludes share-based payment charge.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

South Africa

Hidden

Valley

Total

Harmony

Surface production

Joel

Unisel

Target 3

Total

Underground

Phoenix

Dumps

Kalgold

Total

Surface

Total

South
Africa

542

424

–

5 659

6 465

3 041

1 479

10 985

16 644

1 729

18 373

551

417

5 820

6 245

2 701

1 472

10 418

16 238

1 825

18 063

2 278

1 704

–

28 426

804

1 065

1 103

2 972

31 398

2 257

33 655

2 258

1 695

483

27 643

867

862

1 198

2 927

30 570

2 943

33 513

73 239

54 785

–

913 917

25 849

34 241

35 463

95 553

1 009 470

72 565

1 082 035

72 596

54 495

15 529

888 742

27 875

27 713

38 517

94 105

982 847

94 619

1 077 466

4.20

4.02

–

5.02

0.12

0.35

0.75

0.27

1.89

1.31

1.83

4.10

4.06

5.37

4.75

0.14

0.32

0.81

0.28

1.88

1.61

1.86

371 080

442 359

–

380 522

398 122

401 033

496 991

435 858

385 760

479 196

392 026

334 168

397 615

352 497

366 928

339 896

382 959

377 547

367 988

367 030

391 774

369 203

796

949

–

816

854

860

1 066

935

828

1 028

841

908

1 080

958

997

924

1 041

1 026

1 000

997

1 065

1 003

1 560

1 778

–

1 911

140

371

118

728

626

718

1 369

1 616

1 892

1 743

122

307

103

691

632

685

2 245

1 705

–

28 370

788

1 058

1 086

2 932

31 302

2 340

33 642

2 330

1 715

502

28 354

881

864

1 230

2 975

31 329

3 003

34 332

72 179

54 817

–

912 116

25 335

34 015

34 916

94 266

1 006 382

75 233

1 081 615

74 911

55 138

16 140

911 598

28 324

27 778

39 545

95 647

1 007 245

96 548

1 103 793

1 220 027

924 940

–

15 413 177

428 979

576 606

595 206

1 600 791

17 013 968

1 320 396

18 334 364

1 046 231

770 175

222 494

12 751 428

396 398

389 163

551 323

1 336 884

14 088 312

1 346 310

15 434 622

845 321

753 780

–

10 816 715

320 090

427 100

548 181

1 295 371

12 112 086

1 081 545

13 193 631

754 551

673 957

170 256

10 142 995

294 690

330 111

452 301

1 077 102

11 220 097

1 152 992

12 373 089

(14 129)

110

–

(50 194)

(7 837)

(8 596)

(8 137)

(24 570)

(74 764)

130 573

55 809

14 955

7 904

6 917

252 751

4 947

871

10 839

16 657

269 408

(9 898)

259 510

831 192

753 890

–

10 766 521

312 253

418 504

540 044

1 270 801

12 037 322

1 212 118

13 249 440

769 506

681 861

177 173

10 395 746

299 637

330 982

463 140

1 093 759

11 489 505

1 143 094

12 632 599

388 835

171 050

–

4 646 656

116 726

158 102

55 162

329 990

4 976 646

108 278

5 084 924

276 725

88 314

45 321

2 355 682

96 761

58 181

88 183

243 125

2 598 807

203 216

2 802 023

26 817

11 797

–

320 478

8 051

10 904

3 804

22 759

343 237

7 467

350 704

24 174

7 715

3 959

205 786

8 453

5 083

7 703

21 239

227 025

17 752

244 777

215 007

62 065

–

2 012 915

5 312

17 599

35 994

58 905

2 071 820

78 834

2 150 654

182 239

99 428

20 437

2 298 007

3 641

5 979

40 898

50 518

2 348 525

121 121

2 469 646

14 829

4 281

–

138 832

366

1 214

2 482

4 062

142 894

5 437

148 331

15 920

8 686

1 785

200 745

318

522

3 573

4 413

205 158

10 581

215 739

465 464

478 782

–

451 334

404 729

417 558

529 624

455 678

451 746

514 125

455 929

414 876

456 274

394 810

450 060

344 096

389 896

411 685

385 248

443 854

432 930

442 895

999

1 027

–

968

868

896

1 136

978

969

1 103

978

1 127

1 240

1 073

1 223

935

1 059

1 119

1 047

1 206

1 176

1 203

424 617

496 099

458 094

403 907

422 205

546 949

463 492

457 819

597 398

467 526

384 022

469 246

403 249

452 900

344 319

403 906

422 323

393 875

447 135

514 690

453 044

911

1 064

983

866

906

1 173

994

982

1 282

1 003

1 043

1 275

1 096

1 231

936

1 097

1 148

1 070

1 215

1 395

1 231

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

H2 FY16 RESULTS

RAND AND US$ RESULTS

FOR THE SIX MONTHS AND YEAR ENDED
30 JUNE 2016

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

CONDENSED CONSOLIDATED INCOME STATEMENTS (RAND)

30 June

31 December

30 June

30 June

30 June

2016

2015

2016

2015

Figures in million

Note

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

Revenue

9 627

8 707

7 288

18 334

15 435

Cost of sales

(7 780)

(8 006)

(10 760)

(15 786)

(19 053)

Production costs

(6 535)

(6 715)

(6 018)

(13 250)

(12 632)

Amortisation and depreciation

(1 084)

(1 086)

(1 220)

(2 170)

(2 472)

Reversal of impairment/(impairment) of assets

(3 471)

Other items

(204)

(205)

(51)

(409)

(478)

Gross profit/(loss)

1 847

701

(3 472)

2 548

(3 618)

Corporate, administration and other expenditure

(227)

(182)

(185)

(409)

(378)

Social investment expenditure

(33)

(25)

(32)

(58)

(71)

Exploration expenditure

(88)

(103)

(83)

(191)

(263)

Foreign exchange translation gain/(loss)

606

(798)

(125)

(192)

(367)

Other expenses (net)

(31)

(11)

(9)

(42)

(5)

Operating profit/(loss)

2 010

(418)

(3 967)

1 592

(5 193)

Profit/(loss) from associates

(28)

(25)

Profit on disposal of investments

Net gain/(loss) on financial instruments

(13)

(8)

Investment income

127

114

118

241

229

Finance cost

(133)

(141)

(132)

(274)

(264)

Profit/(loss) before taxation

2 004

(423)

(4 010)

1 581

(5 240)

Taxation

(610)

(22)

595

(632)

704

Normal taxation

(122)

(1)

(123)

Deferred taxation

(488)

(21)

588

(509)

699

Net profit/(loss) for the period

1 394

(445)

(3 415)

949

(4 536)

Attributable to:
Owners of the parent

1 394

(445)

(3 415)

949

(4 536)

Earnings/(loss) per ordinary share (cents)

Basic earnings/(loss)

320

(102)

(786)

218

(1 044)

Diluted earnings/(loss)

306

(102)

(786)

213

(1 044)

The accompanying notes are an integral part of these condensed consolidated financial statements.

Six months ended

Year ended

The condensed consolidated provisional financial statements (condensed consolidated financial statements) for the year ended 30 June
2016 have been prepared by Harmony GOld Mining Company Limited's corporate reporting team headed by Herman Perry. This process

was supervised by the financial director, Frank Abbott and approved by the board of Harmony Gold Mining Company Limited on 15 August

2016. These condensed consolidated financials have been reviewed by the group's external auditors, PricewaterhouseCoopers Incorporated

(see note 16).

(491)

Loss on scrapping of property, plant and

equipment

(64)

(61)

(64)

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

30 June

31 December

30 June

30 June

30 June

2016

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

Net profit/(loss) for the period

1 394

(445)

(3 415)

949

(4 536)

Foreign exchange translation gain/(loss)

(333)

472

(11)

139

Items that will not be reclassified to profit or loss:

Remeasurement of retirement benefit obligation
Actuarial gain recognised during the year

Deferred taxation thereon

(3)

Total comprehensive income/(loss) for the period

1 065

(3 421)

1 092

(4 477)

Attributable to:
Owners of the parent

1 065

(3 421)

1 092

(4 477)

The accompanying notes are an integral part of these condensed consolidated financial statements.

for the year ended 30 June 2016

Balance - 30 June 2015

28 324

3 787

(5 358)

26 753

Share-based payments

322

Reversal of provision for odd lot repurchases

Net profit for the period

949

Other comprehensive income for the period

143

Balance - 30 June 2016 (Reviewed)

28 336

4 252

(4 409)

28 179

Balance - 30 June 2014

28 325

3 539

(822)

31 042

Share-based payments

(1)

189

188

Net loss for the period

(4 536)

Other comprehensive income for the period

Balance - 30 June 2015 (Audited)

28 324

3 787

(5 358)

26 753

The accompanying notes are an integral part of these condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

EQUITY (RAND)

Accumulated

loss

Share capital

Other

reserves

Total

Figures in million

Other comprehensive income/(loss) for the period, net

of income tax

(329)

472

(6)

143

(333)

472

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (RAND)

(11)

139

Items that may be reclassified subsequently to profit

or loss:

Six months ended

Year ended

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

CONDENSED CONSOLIDATED BALANCE SHEETS (RAND)

30 June

31 December

30 June

2016

2015

Figures in million

Note

(Reviewed)

(Unaudited)

(Audited)

ASSETS

Non-current assets
Property, plant and equipment

29 919

30 101

29 548

Intangible assets

870

878

885

Restricted cash

Restricted investments

2 496

2 434

2 384

Investments in associates

Investments in financial assets

Inventories

Other non-current receivables

172

Total non-current assets

33 561

33 593

32 986

Current assets
Inventories

1 167

1 260

1 292

Trade and other receivables

654

658

746

Income and mining taxes

Derivative financial assets

369

Restricted cash

Cash and cash equivalents

1 256

876

1 067

Total current assets

3 469

2 821

3 151

Total assets

37 030

36 414

36 137

EQUITY AND LIABILITIES

Share capital and reserves
Share capital

28 336

28 324

Other reserves

4 252

4 358

3 787

Accumulated loss

(4 409)

(5 803)

(5 358)

Total equity

28 179

26 879

26 753

Non-current liabilities
Deferred tax liabilities

2 413

1 926

1 906

Provision for environmental rehabilitation

2 183

2 364

2 218

Retirement benefit obligation

169

170

163

Other non-current liabilities

Borrowings

2 039

3 092

3 399

Total non-current liabilities

6 820

7 593

7 723

Current liabilities
Borrowings

300

299

Income and mining taxes

Trade and other payables

1 691

1 642

1 660

2 031

1 942

1 661

Total current liabilities

2 031

1 942

1 661

Total equity and liabilities

37 030

36 414

36 137

The accompanying notes are an integral part of these condensed consolidated financial statements.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

30 June

31 December

30 June

30 June

30 June

2016

2015

2016

2015

Figures in million

Note

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

2 923

1 736

921

4 659

1 928

101

Interest paid

(116)

(39)

(62)

(155)

(108)

(83)

(65)

Cash generated by operating activities

2 751

1 762

926

4 513

2 006

(Increase)/decrease in restricted cash

(5)

(7)

(12)

Decrease in restricted investments

(Increase)/decrease in loan to associate

(120)

Loan to ARM BBEE Trust

(200)

Net additions to property, plant and equipment

(1 265)

(1 168)

(1 428)

(2 433)

(2 827)

(1 434)

(1 165)

(1 390)

(2 599)

(2 908)

Borrowings raised

300

941

300

941

Borrowings repaid

(928)

(1 117)

(793)

(2 045)

(793)

Cash generated/(utilised) by financing activities

(928)

(817)

148

(1 745)

148

Foreign currency translation adjustments

(9)

(8)

Net increase/(decrease) in cash and cash equivalents

380

(191)

(307)

189

(762)

Cash and cash equivalents - beginning of period

876

1 067

1 374

1 067

1 829

Cash and cash equivalents - end of period

1 256

876

1 067

1 256

1 067

The accompanying notes are an integral part of these condensed consolidated financial statements.

Income and mining taxes (paid)/refunded

Cash utilised by investing activities

Cash flow from financing activities

Cash flow from investing activities

Interest and dividends received

Six months ended

Cash flow from operating activities

Cash generated by operations

Year ended

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS

(RAND)

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

for the year ended 30 June 2016 (Rand)

1 Accounting policies

Basis of accounting

2 Cost of sales

30 June

31 December

30 June

30 June

30 June

2016

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

Production costs - excluding royalty

6 427

6 652

5 976

13 079

12 537

Royalty expense

108

171

Amortisation and depreciation

1 084

1 086

1 220

2 170

2 472

(Reversal of impairment)/impairment of assets¹

(43)

3 471

(43)

3 471

Rehabilitation expenditure/(credit)²

(69)

(26)

(41)

(6)

Care and maintenance cost of restructured shafts

114

106

Employment termination and restructuring costs

251

Share-based payments³

224

105

329

208

Other

(8)

(1)

(81)

(9)

(81)

Total cost of sales

7 780

8 006

10 760

15 786

19 053

Included in the total for the June 2016 period is a credit of R110 million relating to the change in estimate following the annual reassessment.

3 Foreign exchange translation gain/(loss)

30 June

31 December

30 June

30 June

30 June

2016

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

Unrealised derivative gain (b)

369

Realised derivative gain (b)

Other

(3)

Total foreign exchange translation gain/(loss)

606

(798)

(125)

(192)

(367)

Rand/US$ exchange rate:
Closing/spot at

14.72

15.62

12.16

14.72

12.16

Average

15.39

13.62

11.91

14.50

11.45

a) Refer to note 8 for details on the US$ revolving credit facility.

b) During February 2016, Harmony entered into foreign exchange hedging contracts (forex hedging contracts) in the form of zero cost

collars, which establish a minimum (floor) and maximum (cap) Rand/US Dollar exchange rate at which to convert US dollars to

Rands. The nominal value of open forex hedging contracts at 30 June 2016 is US$500 million. The hedging contracts are spread

over a 12 month period with a weighted average cap price of US$1=R18.27 and weighted average floor price of US$1=R15.55. The

mark-to-market of the derivative asset is R369 million as at 30 June 2016 due to the strengthening of the Rand exchange rate

against the US dollar since the conclusion of the forex hedging contracts. As we do not apply hedge accounting, the gains have been

recorded in the income statement.

Due to the low share price at the time of the awarding of performance shares (PS) for 2015, a large number of PS were allocated to employees. The

increase in the share price between the award date and the approval date resulted in an increase in the IFRS 2 Share-based payment fair value per

award measurement.

135

(382)

(665)

(122)

(800)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

The condensed consolidated financial statements for the year ended 30 June 2016 are prepared in accordance with the requirements of

the JSE Limited Listings Requirements for provisional reports and the requirements of the Companies Act of South Africa. The Listings

Requirements require provisional reports to be prepared in accordance with the framework concepts and the measurement and

recognition requirements of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards

Board (IASB) and the SAICA Financial Reporting Guides as issued by the Accounting Practices Committee and Financial

Pronouncements as issued by the Financial Reporting Standards Council and to also, as a minimum, contain the information required by

IAS 34 Interim Financial Reporting . The accounting policies applied in the preparation of the condensed consolidated financial

statements are in terms of IFRS and are consistent with those applied in the previous consolidated annual financial statements.

Six months ended

Year ended

The net reversal of impairment of long-lived assets in the June 2016 period consists of a reversal of impairment of R738 million on Doornkop, offset

by an impairment of R466 million on Hidden Valley and R229 million on Masimong. The June 2015 impairment consists of an impairment of R2.11

billion on Hidden Valley, R1.04 billion on Doornkop, R278 million on Phakisa and R43 million on Freddies 9. Refer to note 6 for further details.

Translation gain/(loss) on US$ revolving credit

facility (a)

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

for the year ended 30 June 2016 (Rand)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

4 Taxation

5 Earnings/(loss) per share

30 June

31 December

30 June

30 June

30 June

2016

2015

2016

2015

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

Weighted average number of shares (million)

436.3

435.2

434.7

435.7

434.4

Weighted average number of diluted shares (million)

455.9

436.9

438.6

446.4

438.1

Total earnings/(loss) per share (cents):
Basic earnings/(loss)

320

(102)

(786)

218

(1 044)

Diluted earnings/(loss)

306

(102)

(786)

213

(1 044)

Headline earnings/(loss)

324

(103)

(16)

221

(189)

Diluted headline earnings/(loss)

310

(103)

(16)

216

(189)

Figures in million
Reconciliation of headline earnings/(loss):
Net profit/(loss)

1 394

(445)

(3 415)

949

(4 536)

Adjusted for:

Profit on disposal of investments¹

(4)

Reversal of impairment/(impairment) of assets

(43)

3 471

(43)

3 471

Profit on sale of property, plant and equipment

(3)

(4)

(5)

(7)

(6)

Loss on scrapping of property, plant and equipment

491

Headline earnings/(loss)

1 412

(449)

(71)

964

(821)

There is no taxation effect on this item.

6 Property, plant and equipment

(a) Impairment/reversal of impairment

2017 onwards

US$ gold price ($/ounce)

1 189

US$ silver price ($/ounce)

17.80

Exchange rate (R/US$)

13.86

Exchange rate (PGK/US$)

3.10

Rand gold price (R/Kg)

530 000

(67)

Taxation effect on profit on sale of property, plant

and equipment

(1)

1

Taxation effect on reversal of

impairment/(impairment) of assets

12 -

(169)

12
(169)

Normal taxation expense increased during the year ended 30 June 2016 due to the increased profitability at most of the South African

operations and the inclusion of the unrealised derivative gain of R369 million in determining taxable income.

The deferred tax expense increased during 2016 due to the net increase in the deferred tax rates year on year and utilisation of

assessed losses and unredeemed capital by the South African companies. The weighted average deferred tax rates for most South

African companies increased as a result of increased forecast profitability of these operations.

Six months ended

(1)

Taxation effect on loss on scrapping of property,

plant and equipment

(12)
-

(9)

(12)

Year ended

One of the most significant assumptions that influence the Group's operations' life-of-mine plans and therefore impairment is the

expected gold price. During this year's planning and testing, commodity price and exchange rate assumptions as per the table below

were used. Post-tax real discount rates ranging between 8.43% and 11.77% (2015: 7.99% and 12.03%), depending on the asset,

were used to determine the recoverable amounts (generally fair value less costs to sell).

For South African operations, values of US$40.86, US$23.35 and US$5.84 per ounce were used for measured, indicated and

inferred resources, respectively. For Hidden Valley, US$5.84 per ounce was used for indicated and inferred resources.

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

20

for the year ended 30 June 2016 (Rand)

  The annual impairment assessment performed resulted in a net reversal of impairment of R43 million for the 2016 financial year.

(b) Loss on scrapping of property, plant and equipment

7 Investment in associate

8 Borrowings

US$ facility

Rand facility

Figures in million

US dollar

SA rand

Borrowings summary at 30 June 2016

Facility

250

1 300

Drawn down

140
300

Undrawn committed borrowing facilities

110
1 000

February

2018

Interest rate

LIBOR + 3%
JIBAR + 3.5%

At 30 June 2016, the drawn amount of R300 million on the Nedbank facility is repayable within 12 months and has been reclassified as

current. Refer to note 13 for events after reporting date.

The recoverable amounts for these assets were determined on a fair value less costs to sell basis using the assumptions above in

discounted cash flow models and attributable resource values. These are fair value measurements classified as level 3.

The sensitivity scenario of a 10% decrease in the commodity price used in the discounted cash flow models and the resource values

used (with all other variables held constant) would have resulted in an additional impairment at Hidden Valley of R319 million and

Masimong of R281 million. The decreases noted would have resulted in impairments at Unisel of R162 million, Free State surface

assets of R141 million, Other Harmony assets of R46 million and Doornkop of R15 million (as opposed to the reversal recorded of

R738 million).

At 30 June 2016, following the annual life-of-mine planning, an amount of R64 million (2015: R491 million) was recorded for various

operations as a result of the abandonment of uneconomical areas in the life-of-mine plans of those operations. The abandonment of

unprofitable areas in the plans resulted in the derecognition of property, plant and equipment as no future economic benefits are

expected from their use or disposal. For June 2015, the scrapping loss recorded mainly related to the life-of-mine optimisation

process finalised in December 2014 which resulted in the abandoning of shaft levels and raise lines at Kusasalethu and Masimong.

Harmony's gross portion of the subordinated shareholders' loan extended to Rand Refinery Proprietary Limited (Rand Refinery) in

December 2014 amounts to R120 million. This loan forms part of the net investment in associate. At 30 June 2016, Harmony set off its

share of profits from associate of R7 million against its share of losses of R25 million recorded against the loan in 2015, as well as an

additional provision for impairment of R25 million (2015: R15 million). The recoverable amount of the loan at 30 June 2016 is R62 million

(2015: R80 million). The fair value measurement of the net investment is classified as level 3 and is non-recurring. The loan is due in

December 2016 and has been included in Other receivables - current.

During the 2016 financial year R300 million and R400 million was raised and repaid respectively on the R1.3 billion Nedbank revolving

credit facility. US$110 million (R1 645 million) was repaid on the US$ revolving credit facility. Refer to note 3 for details on the foreign

exchange translation movement.

Maturity

December

2016

• A reversal of R738 million was recorded for Doornkop mainly due to the increased Rand gold price assumption, improvements in

  operational efficiencies following the restructuring in 2015 and new areas included in the life-of-mine plan based on additional

  exploration performed during 2016. The recoverable amount is R2.8 billion.
• An impairment of R466 million was recorded for Hidden Valley. The updated life-of-mine plan for Hidden Valley results in lower

  production in 2017 as the mine undergoes processing of ore stockpiles and a period of care and maintenance, with stripping

  activities for stage 5 planned to recommence in the 2018 financial year. The recoverable amount is R319 million (US$21.7 million).
• An impairment of R229 million was recorded for Masimong which has a remaining life of mine of three years. The exploration

  programme to find additional areas of the higher grade B Reef proved unsuccessful and was stopped during 2016. In addition, the

  grade estimation of the Basal Reef decreased and as a result a portion of the resource was abandoned at 30 June 2016. The

  recoverable amount is R472 million.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

21

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

for the year ended 30 June 2016 (Rand)

9 Financial risk management activities

Fair value determination
The fair value levels of hierarchy are as follows:

Level 1:

Quoted prices (unadjusted) in active markets for identical assets;

Level 2:

Level 3:

Inputs for the asset that are not based on observable market data (that is unobservable inputs).

The following table presents the group's assets and liabilities that are measured at fair value at reporting date:

Available-for-sale financial assets
Investment in financial assets¹

Level 3

5

5

5

Fair value through profit or loss
Restricted investments²

Level 2
640
614
538

Derivative assets³

Level 2
369
-
-

1

2

3

For all other financial instruments, fair value approximates carrying value.

10 Net additions to property, plant and equipment

30 June

31 December

30 June

30 June

30 June

2016

2015

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Reviewed)

(Audited)

Capital expenditure - operations

1 125

1 027

1 191

2 152

2 470

Other

-

(1)

(6)

(1)

2

Net additions

1 265

1 168

1 428

2 433

2 827

11 Commitments and contingencies

At

At

At

30 June

31 December

30 June

2016

2015

2015

Figures in million

(Reviewed)

(Unaudited)

(Audited)

Capital expenditure commitments:
Contracts for capital expenditure

264

166

158

Authorised by the directors but not contracted for

516

1 607

257

780

1 773

415

This expenditure will be financed from existing resources and, where appropriate, borrowings.

119

Additions resulting from stripping activities at

Hidden Valley

14

28

138

42

236

Level 3 fair values have been valued by the directors by performing independent valuations on an annual basis.
The majority of the level 2 fair values are directly derived from the Top 40 index on the JSE, and are discounted at market interest rate. This relates to

equity-linked deposits in the group's environmental rehabilitation trust funds.
The mark-to-market remeasurement of the forex hedging contracts (zero cost collars) is derived from a Black-Scholes valuation technique, derived

from spot Rand/US$ exchange rate inputs and discounted at market interest rate.

Six months ended

Year ended

Capital and capitalised exploration and evaluation

expenditure for Golpu

126

114

105

240

Inputs other than quoted prices included within level 1 that are observable for the asset, either directly or indirectly (that is,

as prices) or indirectly (that is derived from prices);

Fair value

hierarchy

level

At 30 June

2016

At 31

December

2015

At 30 June

2015

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

22

for the year ended 30 June 2016 (Rand)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

Contingent liabilities

(a) Silicosis

12 Related parties

(a) Movement in shares owned by directors/prescribed officers for the year ended 30 June 2016:

Name of director/prescribed officer

Shares

purchased in

open market

Shares sold

in open

market

Performance

shares vested

and retained

Frank Abbott (Financial director)¹

300 000

-
18 547

Graham Briggs (Chief executive officer)²

-
-
46 874

Harry "Mashego" Mashego (Executive director)³

-
10 000
7 760

Ken Dicks (Independent non-executive director)⁴

15 000

-

n/a

Johannes van Heerden⁵

-
41 337
13 153

1

Purchased on 15 December 2015.

2

Graham Briggs retired on 31 December 2015.

3

Sold on 23 March 2016.

4

Purchased on 8 December 2015.

5

Sold in several tranches during 2016.

(b)

13 Subsequent events

a) On 7 July 2016, Harmony repaid the remaining R300 million outstanding on the R1.3 billion Nedbank ZAR facility.
b)

c) On 15 August 2016, the board declared a dividend of 50 SA cents for the year ended 30 June 2016, payable on 19 September 2016.

14 Segment report

The segment report follows on page 24.

On 13 May 2016, the Johannesburg High Court ordered the certification of a silicosis class and a tuberculosis (TB) class, which are

to proceed as a single class against the mining companies acted in the application. The companies requested leave to appeal to the

Supreme Court of Appeal (SCA), which was granted on 24 June 2016. Harmony submitted its notice of appeal in respect of the

transmissibility of the general damages order on 22 July 2016.

During July 2016, Harmony entered into short term gold forward sale contracts for a total of 432 000 ounces over a period of 24

R682 000/kg. We will be applying cash flow hedge accounting to these contracts.

Due to the limited information available on the above claim and potential other claims, and the uncertainty of the outcome of the

matter, no costs estimation can as yet be made for the possible obligation.

For a detailed disclosure on contingent liabilities refer to Harmony's annual financial statements for the financial year ended 30 June

2015. Other than discussed below, there were no significant changes in contingencies since 30 June 2015.

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of

the group, directly or indirectly, including any director (whether executive or otherwise) of the group.

During July 2015, Harmony signed a R150 million guarantee for the ARM Broad Based Economic Empowerment (BBEE) Trust (the

Trust), shareholder of the African Rainbow Minerals Limited. The guarantee was for additional security for the Trust's loan due to

Nedbank Limited. The guarantee was subsequently cancelled in April 2016 after Harmony advanced R200 million to the Trust as part

related (3 month JIBAR plus 4.25%) and is receivable on the maturity of the loan on 31 December 2022. At 30 June 2016, the loan to

in Other non-current receivable in the balance sheet. The fair value measurement is classified as level 3 and is non-recurring.

23

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

for the year ended 30 June 2016 (Rand)

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS

15 Reconciliation of segment information to condensed consolidated income statements and balance sheets

30 June

30 June

2016

2015

Figures in million

(Reviewed)

(Audited)

Reconciliation of production profit to gross profit
Total segment revenue

18 334

15 435

Total segment production costs

(13 250)

(12 632)

Production profit per segment report

5 084

2 803

Depreciation

(2 170)

(2 472)

Reversal of impairment/(impairment) of assets

43

(3 471)

Other cost of sales items

(409)

(478)

Gross profit/(loss) as per income statements¹

2 548

(3 618)

At

At

30 June

30 June

2016

2015

Figures in million

(Reviewed)

(Audited)

Reconciliation of total segment mining assets to consolidated property, plant and equipment

Property, plant and equipment not allocated to a segment
Mining assets

657

762

Undeveloped property

5 139

5 139

Other non-mining assets

168

199

Wafi-Golpu assets

1 785

1 188

7 749

7 288

16 Review report

These condensed consolidated financial statements for the year ended 30 June 2016 have been reviewed by PricewaterhouseCoopers

Inc., who expressed an unmodified review conclusion thereon. A copy of the auditor's review report is available for inspection at the

company's registered office, together with the financial statements identified in the auditor's report.

1

The reconciliation was done up to the first recognisable line item on the income statement. The reconciliation will follow the income statement after that.

Year ended

The "Reconciliation of segment information to condensed consolidated financial statements" line item

in the segment report is broken down in the following elements, to give a better understanding of the

differences between the financial statements and segment report:

24

SEGMENT REPORT (RAND/METRIC)

for the year ended 30 June 2016

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

South Africa

Underground

Kusasalethu

2 078

1 939

1 816

1 996

262

(57)

3 766

3 619

360

463

3 863

3 953

668

908

Doornkop

1 480

1 220

1 047

1 092

433

128

2 984

2 239

208

245

2 730

2 663

630

603

Phakisa

2 186

1 420

1 375

1 181

811

239

4 246

4 307

323

403

3 988

3 118

686

611

Tshepong

2 756

1 948

1 844

1 611

912

337

4 161

4 025

307

313

5 031

4 278

1 088

992

Masimong

1 318

1 118

1 038

992

280

126

485

893

110

166

2 432

2 463

650

670

Target 1

1 833

1 738

1 250

1 191

583

547

2 826

2 782

322

296

3 387

3 824

739

749

Bambanani

1 617

1 330

811

705

806

625

807

821

106

110

3 013

2 908

232

229

Joel

1 220

1 046

831

770

389

276

728

578

215

182

2 278

2 258

542

551

Unisel

925

770

754

682

171

88

543

594

62

99

1 704

1 695

424

417

Target 3

(a)

-

222

-

177

-

45

526

535

-

20

-

483

-

90

Surface

All other surface operations

1 601

1 338

1 272

1 092

329

246

448

483

59

51

2 972

2 927

10 985

10 418

Total South Africa

17 014

14 089

12 038

11 489

4 976

2 600

21 520

20 876

2 072

2 348

31 398

30 570

16 644

16 238

International

Hidden Valley

1 320

1 346

1 212

1 143

108

203

650

1 384

79

121

2 257

2 943

1 729

1 825

Total international

1 320

1 346

1 212

1 143

108

203

650

1 384

79

121

2 257

2 943

1 729

1 825

Total operations

18 334

15 435

13 250

12 632

5 084

2 803

22 170

22 260

2 151

2 469

33 655

33 513

18 373

18 063

-

-

-

-

7 749

7 288

18 334

15 435

13 250

12 632

29 919

29 548

#

Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of R240 million (2015: R119 million).

^(a) Target 3 was placed on care and maintenance in October 2014.

@

Production statistics are unaudited and not reviewed.

The segment report for the year ended 30 June 2015 has been audited. The segment report for the year ended 30 June 2016 has been reviewed.

Reconciliation of the segment

information to the condensed

consolidated financial statements

(refer to note 15)

Tonnes milled^@

30 June

R million

R million

R million

R million

R million

kg

t'000

Revenue

30 June

Production cost

30 June

Production profit/(loss)

30 June

Mining assets

30 June

Capital expenditure^#

30 June

Kilograms produced^@

30 June

25

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

CONDENSED CONSOLIDATED INCOME STATEMENTS (US$)

(Convenience translation)

30 June

31 December

30 June

30 June

30 June

2016

2015

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Revenue

625

639

612

1 264

1 348

Cost of sales

(505)

(588)

(903)

(1 090)

(1 645)

Production costs

(424)

(493)

(505)

(914)

(1 103)

Amortisation and depreciation

(70)

(80)

(102)

(150)

(216)

Reversal of impairment/(impairment) of assets

3

-

(291)

3

(285)

Other items

(14)

(15)

(5)

(29)

(41)

Gross profit/(loss)

120

51

(291)

174

(297)

Corporate, administration and other expenditure

(15)

(13)

(16)

(28)

(33)

Social investment expenditure

(2)

(2)

(3)

(4)

(6)

Exploration expenditure

(6)

(7)

(7)

(13)

(23)

Loss on scrapping of property, plant and equipment

(4)

-

(5)

(4)

(42)

Foreign exchange translation gain/(loss)

39

(59)

(10)

(13)

(32)

Other expenses (net)

(2)

(1)

(1)

(3)

-

Operating profit/(loss)

130

(31)

(333)

109

(433)

Profit/(loss) from associates

(2)

3

(2)

-

(2)

Net gain/(loss) on financial instruments

2

(1)

-

1

1

Investment income

8

8

10

17

20

Finance cost

(9)

(10)

(11)

(19)

(22)

Profit/(loss) before taxation

129

(31)

(336)

108

(436)

Taxation

(40)

(2)

50

(44)

62

Normal taxation

(8)

-

1

(8)

-

Deferred taxation

(32)

(2)

49

(36)

62

Net profit/(loss) for the period

89

(33)

(286)

64

(374)

Attributable to:
Owners of the parent

89

(33)

(286)

64

(374)

Earnings/(loss) per ordinary share (cents)

;

Basic earnings/(loss)

21

(7)

(65)

15

(86)

Diluted earnings/(loss)

20

(7)

(65)

15

(86)

Note on convenience translations
Except where specific statements have been extracted from the 2015 annual financial statements, the requirements of IAS 21, The Effects

of the Changes in Foreign Exchange Rates , have not necessarily been applied in the translation of the US Dollar financial statements

presented on page 25 to 29.

The currency conversion average rates for the six months ended June 2016: US$1 = R15.39 (December 2015: US$1 = R13.62, June 2015:

US$1 = R11.91). For year ended: June 2016: US$1 = R14.50 (June 2015: US$1 = R11.45).

The income statement for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

Six months ended

Year ended

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

26

(Convenience translation)

30 June

31 December

30 June

30 June

30 June

2016

2015

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Net profit/(loss) for the period

89

(33)

(286)

64

(374)

Foreign exchange translation

(22)

35

(1)

10

(368)

Items that will not be reclassified to profit or loss:

-

-

1

-

1

Remeasurement of retirement benefit obligation
Acturial gain recognised during the year

-

-

1

-

1

Deferred taxation thereon

-

-

-

-

-

Total comprehensive income/(loss) for the period

67

2

(286)

74

(741)

Attributable to:
Owners of the parent

67

2

(286)

74

(741)

The statement of comprehensive income for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

for the year ended 30 June 2016 (Convenience translation)

Balance - 30 June 2015

1 924

257

(364)

1 817

Share-based payments

-

22

-

22

Reversal of provision for odd lot repurchases

1

-

-

1

Net profit for the period

-

-

64

64

Other comprehensive income for the period

-

10

-

10

Balance - 30 June 2016 (Unaudited)

1 925

289

(300)

1 914

Balance - 30 June 2014

4 035

(887)

(223)

2 925

Share-based payments

-

16

-

16

Net loss for the period

-

-

(374)

(374)

Other comprehensive income for the period

-

(367)

-

(367)

Balance - 30 June 2015 (Audited)

4 035

(1 238)

(597)

2 200

The currency conversion closing rates for the period ended 30 June 2016: US$1 = R14.72 (June 2015: US$1 = R12.16).

The statement of changes in equity for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN

EQUITY (US$)

Figures in million

Share capital

Other

reserves

Accumulated

loss

Total

CONDENSED CONSOLIDATED STATEMENTS OF

COMPREHENSIVE INCOME (US$)

(368)

Six months ended

Year ended

The currency conversion average rates for the six months ended June 2016: US$1 = R15.39 (December 2015: US$1 = R13.62, June 2015:

US$1 = R11.91). For year ended: June 2016: US$1 = R14.50 (June 2015: US$1 = R11.45).

Other comprehensive income/(loss) for the period, net

of income tax

(22)

35

-

10

(367)

Items that may be reclassified subsequently to profit or

loss:

(22)

35

(1)

10

27

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

CONDENSED CONSOLIDATED BALANCE SHEETS (US$)

(Convenience translation)

At

At

At

30 June

31 December

30 June

2016

2015

2015

Figures in million

(Unaudited)

(Unaudited)

(Audited)

ASSETS

Non-current assets
Property, plant and equipment

2 033

1 927

2 430

Intangible assets

59

56

73

Restricted cash

4

4

4

Restricted investments

170

156

196

Inventories

3

2

3

Other non-current receivables

12

5

7

Total non-current assets

2 281

2 150

2 713

Current assets
Inventories

79

81

106

Trade and other receivables

44

42

62

Income and mining taxes

-

1

2

Derivative financial assets

25

-

-

Restricted cash

1

1

1

Cash and cash equivalents

85

56

88

Total current assets

234

181

259

Total assets

2 515

2 331

2 972

EQUITY AND LIABILITIES

Share capital and reserves
Share capital

1 925

1 813

4 035

Other reserves

289

278

(1 238)

Accumulated loss

(300)

(371)

(597)

Total equity

1 914

1 720

2 200

Non-current liabilities
Deferred tax liabilities

164

123

157

Provision for environmental rehabilitation

148

151

182

Retirement benefit obligation

11

11

13

Other non-current liabilities

1

3

3

Borrowings

139

198

280

Total non-current liabilities

463

486

635

Current liabilities
Borrowings

20

20

-

Income and mining taxes

3

-

-

Trade and other payables

115

105

137

Total current liabilities

138

125

137

Total equity and liabilities

2 515

2 331

2 972

The balance sheet at 30 June 2015 has been extracted from the 2015 annual financial statements.

The balance sheet for June 2016 converted at a conversion rate of US$1 = R14.72 (December 2015 : US$1 = R15.62, June 2015 : US$1

= R12.16).

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

28

CONDENSED CONSOLIDATED CASH FLOW STATEMENTS (US$)

(Convenience translation)

30 June

31 December

30 June

30 June

30 June

2016

2015

2015

2016

2015

Figures in million

(Unaudited)

(Unaudited)

(Unaudited)

(Unaudited)

(Audited)

Cash generated by operations

190

127

77

321

168

Interest and dividends received

2

3

4

5

9

Interest paid

(8)

(3)

(5)

(11)

(9)

Income and mining taxes refunded

(5)

1

2

(4)

8

Cash generated by operating activities

179

128

78

311

176

Cash flow from investing activities

(Increase)/decrease in restricted cash

-

-

1

(1)

1

Decrease in restricted investments

2

-

3

3

2

(Increase)/decrease in loan to associate

-

1

-

-

(10)

Loan to ARM BBEE Trust

(13)

-

-

(14)

-

Net additions to property, plant and equipment

(82)

(86)

(120)

(168)

(246)

(93)

(85)

(116)

(180)

(253)

Borrowings raised

-

22

79

21

80

Borrowings repaid

(60)

(82)

(67)

(141)

(65)

Cash generated/(utilised) by financing activities

(60)

(60)

12

(120)

15

Foreign currency translation adjustments

3

(15)

(5)

(14)

(22)

Net increase/(decrease) in cash and cash equivalents

29

(32)

(31)

(3)

(84)

Cash and cash equivalents - beginning of period

56

88

119

88

172

Cash and cash equivalents - end of period

85

56

88

85

88

The cash flow statement for the year ended 30 June 2015 has been extracted from the 2015 annual financial statements.

The currency conversion average rates for the six months ended: June 2016: US$1 = R15.39 (December 2015: US$1 = R14.24, June 2015:

US$1 = R11.91). For year ended: June 2016: US$1 = R14.50 (June 2015: US$1 = R11.45).

Closing balance translated at closing rates of: June 2016 : US$1 = R14.72 (December 2015 : US$1 = R15.62, June 2015 : US$1 = R12.16).

Six months ended

Cash flow from financing activities

Cash utilised by investing activities

Cash flow from operating activities

Year ended

29

SEGMENT REPORT (US$/IMPERIAL)

for the year ended 30 June 2016 (Convenience translation)

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

2016

2015

South Africa

Underground

Kusasalethu

143

169

125

174

18

(5)

256

298

25

40

124 198

127 092

736

1 001

Doornkop

102

107

72

95

30

12

203

184

14

21

87 772

85 618

695

665

Phakisa

151

124

95

103

56

21

289

354

22

35

128 217

100 246

756

674

Tshepong

190

170

127

141

63

29

283

331

21

27

161 751

137 540

1 200

1 095

Masimong

91

98

72

87

19

11

33

73

8

15

78 190

79 187

716

739

Target 1

126

152

86

104

40

48

192

229

22

26

108 895

122 944

814

826

Bambanani

112

116

56

62

56

54

55

68

7

10

96 870

93 495

256

253

Joel

84

91

57

67

27

24

49

48

15

16

73 239

72 596

597

607

Unisel

64

67

52

60

12

7

37

49

4

9

54 785

54 495

467

460

Target 3^(a)

-

19

-

15

-

4

36

44

-

2

-

15 529

-

99

Surface

All other surface operations

110

117

88

95

22

22

30

40

4

4

95 553

94 105

12 112

11 488

Total South Africa

1 173

1 230

830

1 003

343

227

1 462

1 718

142

205

1 009 470

982 847

18 349

17 907

International

Hidden Valley

91

118

84

100

7

18

44

114

5

11

72 565

94 619

1 906

2 012

Other

-

-

-

-

-

-

-

Total international

91

118

84

100

7

18

44

114

5

11

72 565

94 619

1 906

2 012

Total operations

1 264

1 348

914

1 103

350

245

1 506

1 832

147

216

1 082 035

1 077 466

20 255

19 919

# Capital expenditure for international operations excludes expenditure spend on Wafi-Golpu of US$16 million (2015: US$10 million).

(a)

Target 3 was placed on care and maintenance in October 2014.

@

Production statistics are unaudited and unreviewed.

The segment report for the year ended 30 June 2015 has been audited. The segment report for the year ended 30 June 2016 has not been reviewed or audited.

oz

t'000

Revenue

30 June

Production cost

30 June

US$ million

US$ million

US$ million

US$ million

US$ million

Production profit/(loss)

30 June

Mining assets

30 June

Capital expenditure^#

30 June

Ounces produced^@

30 June

Tons milled^@

30 June

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

30

DEVELOPMENT RESULTS

6 month average
January 2016 – June 2016

METRIC

Channel

Reef Sampled

Width

Value

Gold

Meters

Meters

(Cm’s)

(g/t)
(Cmg/t)

Tshepong

Basal

472

344

9.41

149.00

1 402

B Reef

529

544

155.12

13.21

2049

All Reefs

1 001

888

98.67

18.23

1 799

Phakisa

Basal

822

844

58.92

21.30

1 255

All Reefs

822

844

58.92

21.30

1 255

Bambabani
Basal

62

56

197.50

10.09

1 993

All Reefs

62

56

197.50

10.09

1 993

Doornkop

Main Reef

39

46.00

4.93

227

South Reef

625

585

62.98

15.32

965

All Reefs

625

624

61.92

14.83

918

Kusasalethu

VCR Reef

575

448

109.13

9.30

1 015

All Reefs

575

448

109.13

9.30

1 015

Target 1

Elsburg

83

90

260.90

1.73

451

All Reefs

83

90

260.90

1.73

451

Masimong 5

Basal

447

317

75.97

16.37

1 243

B Reef

320

374

74.62

22.68

1 692

All Reefs

766

691

75.24

19.76

1 486

Unisel

Basal

251

190

136.35

13.95

1 903

Leader

709

588

217.64

4.82

1 050

All Reefs

960

778

197.79

6.36

1 258

Joel

Beatrix

1 194

1 107

122.16

7.69

940

All Reefs

1 194

1 107

122.16

7.69

940

Total Harmony

Basal

2 053

1 751

65.12

21.13

1 376

Beatrix

1 194

1 107

122.16

7.69

940

Leader

709

588

217.64

4.82

1 050

B Reef

849

918

122.32

15.56

1 904

Elsburg

83

90

260.90

1.73

451

South Reef

625

585

62.98

15.32

965

VCR

575

448

109.13

9.30

1 015

Main Reef

39

46.00

4.93

227

All Reefs

6 087

5 526

108.67

11.46

1 246

IMPERIAL

Channel

Reef Sampled

Width

Value

Gold

Feet

Feet

(Inch)

(oz/t)
(In.oz/t)

Tshepong

Basal

1 548

1 129

4.00

4.03

16

B Reef

1 736

1 785

61.00

0.39

24

All Reefs

3 284

2 913

39.00

0.53

21

Phakisa

Basal

2 696

2 769

23.00

0.63

14

All Reefs

2 696

2 769

23.00

0.63

14

Bambabani

Basal

203

184

78.00

0.29

23

All Reefs

203

184

78.00

0.29

23

Doornkop

Main Reef

128

18.00

0.15

3

South Reef

2 049

1 919

25.00

0.44

11

All Reefs

2 049

2 047

24.00

0.44

11

Kusasalethu

VCR Reef

1 887

1 470

43.00

0.27

12

All Reefs

1 887

1 470

43.00

0.27

12

Target 1

Elsburg

271

295

103.00

0.05

5

All Reefs

271

295

103.00

0.05

5

Masimong 5

Basal

1 465

1 040

30.00

0.48

14

B Reef

1 049

1 227

29.00

0.67

19

All Reefs

2 514

2 267

30.00

0.57

17

Unisel

Basal

823

623

54.00

0.40

22

Leader

2 325

1 929

86.00

0.14

12

All Reefs

3 149

2 552

78.00

0.19

14

Joel

Beatrix

3 918

3 632

48.00

0.22

11

All Reefs

3 918

3 632

48.00

0.22

11

Total Harmony

Basal

6 736

5 745

26.00

0.61

16

Beatrix

3 918

3 632

48.00

0.22

11

Leader

2 325

1 929

86.00

0.14

12

B Reef

2 785

3 012

48.00

0.46

22

Elsburg

271

295

103.00

0.05

5

South Reef

2 049

1 919

25.00

0.44

11

VCR

1887

1 470

43.00

0.27

12

Main Reef

128

18.00

0.15

3

All Reefs

19 970

18 130

43.00

0.33

14

31

Harmony Gold Mining Company Limited Results for the six months and year ended 30 June 2016

www.harmony.co.za

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused

this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: August 17, 2016

Harmony Gold Mining Company Limited

By:

/s/ Frank Abbott

Name: Frank Abbott
Title: Financial Director